1.

1 INTRODUCTION

INTRODUCTION OF THE STUDY

The primary objective of any business enterprises is to attain profit. Based on this objective, firm works towards its goal. Finance is regarded as the lifeblood of a business enterprise to attain its goal. This is because in the modern money oriented economy, finance is one of the basic foundations of all kinds of economic activities. It is the master key, which provides access to all the sources for being employed in manufacturing and merchandising activities. It has rightly been said that business needs money to make money. However, it is also true that money be gets more money, only when it is properly managed. Hence, efficient management of every business enterprises is closely linked with efficient management of its finances.

MEANING AND IMPORTANCE OF FINANCE

Finance is defined as the provision of money at the time when it is required. Every enterprise needs finance to carry on its operations and to achieve its targets. Finance is the lifeblood of an enterprise. Finance is concerned with financial management of profit seeking business organizations engaged in all types of activities.

IMPORTANCE & FUNCTIONS OF FINANCIAL MANAGEMENT: IMPORTANCE OF FINANCIAL MANAGEMENT:

1. Financial management covers a very large spectrum of activities of a business. 2. Financial management influences the profitability or return on investment of a business.
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3. Financial management affects the solvency position of a business. 4. Financial management affects the liquidity position of a business. 5. Financial management affects the cost of capital. 6. Good financial management enables a business to command capital resources flowing into the business. 7. Market value of the business can be increased through efficient and effective financial management. 8. Efficient financial management is necessary for the survival, growth, expansion and diversification.

FUNCTIONS OF FINANCIAL MANAGEMENT:

The function of financial management includes the investment function, financing function and dividend function.

1. INVESTMENT FUNCTION:

It is concerned with capital budjeting and current asset management. Capital budgeting deals with fixed asset management. Inventory management, receivables management, marketable securities management, cash

management, working capital administration comes under current assets management. It refers to raising necessary funds for backing up investment function. It deals with capital structure of the business. Lot of managerial planning and control are needed in financing function.

2. DIVIDEND FUNCTION:
Dividend payment is necessary for shareholders except a return on their share holdings. Retaining the profits and plugging back the same in the business may become necessary because the company can invest more profitably than the shareholders, the company can get established.

1.2

COMPANY PROFILE

The Cooperative Banks functioning in Tamil Nadu are fulfilling the credit requirements of the farmers, weavers, rural artisans, consumers of urban area. These institutions are known as Cooperative Credit Institutions. The Coop. institutions are functioning under two categories. They are: Long-term Co-operative credit institutions Short-term coop. credit institutions

The Co-operative credit institutions functioning under short-term credit structure are of three-tier in nature. At the grass root level, the Primary Agricultural Cooperative Banks (PACBs) are functioning at village level. At the district level, the Central Coop Banks (CCBs) are functioning with the headquarters at district capital and their branches in various places of the districts concerned.

At the apex level, the Tamil Nadu State Apex Coop. Bank Ltd, (TNSC Bank) is functioning at Chennai which co-ordinates the entire short-term coop. credit structure. The Tamil Nadu State Apex Co-operative Bank Ltd. commenced its business during November 1905 as an Urban Co-operative Bank.

It was subsequently changed into a District Central Co-operative Bank during July 1920. At present, the Bank is functioning at Chennai with 44 branches , an Extension Counter and H.O TNSC Bank is guiding the Dist.

Central Co-operative Banks /Primary Agricultural Co-operative Banks in their functioning and it is playing a major role in the co-operative movement of Tamil Nadu was formed.

As such, the Bank has been serving the people of Tamil Nadu for a centenary for their economic development. As far as Indian Co-operative movement is concerned, the Bank has commenced its business from the very next year of the formation of coop. movement in India.TNSC Bank is the first ever State Co-operative.

Bank having the credit of celebrating the centenary year. TNSC Bank has got the license of Reserve Bank of India to carry on the banking business. TNSC Bank is a Scheduled Coop. Bank and has been listed under the Second Schedule of RBI Act.

TNSC Bank is a member of the Deposit Insurance and Credit Guarantee Corporation (DICGC) and is an insured coop. bank as per DICGC Act. TNSC Bank has got a privilege of having its share capital by the Government of Tamil Nadu. TNSC Bank has been under close supervision and monitoring of the higher financing agencies, viz., RBI,NABARD.

Periodical inspection and supervision are done by NABARD as per RBI guidelines. Government of Tamil Nadu is reviewing the performance of the Bank periodically. Eminent Co-operators have contributed for the growth and development of the TNSC Bank.

At present, TNSC Bank is headed by Thiru. TAMILARASAN, (Additional Registrar of Coop. Societies) as Special Officer, who has been deputed from the Government of Tamil Nadu.

History of the TNSC Bank: The Mission of the Bank is to mobilize resources, provide banking products and other professionalized services to the people, strengthen the affiliates, provide vibrant leadership to the co-operative banking system, achieve sustained growth and ultimately to attain prime position in the banking industry.

Ambition: The ambition of the TNSC Bank is to feed the people and the Nation with prosperity, by extending its areas of operation and activities to cover all facets of economic spheres and integrated rural development.

Old in Tradition and Young in Outlook: TNSC Bank, the Apex Co-operative Bank and the main purveyor of agricultural credit in Tamil Nadu, has completed 104 years of useful and purposeful existence. TNSC Bank is old in tradition but young and dynamic in outlook and action.

Leader of Co-operative Credit Movement: TNSC Bank is the Leader of the Co-operative Credit Movement in Tamil Nadu for over a century.

First State Coop Bank to Celebrate Centenary Year: TNSC Bank was the18th Co-operative Society to be registered in the erstwhile Madras Presidency as The Madras Central Urban Bank and this Bank was the first Central Co-operative Bank to be established in India.

Commencement of Business: It was Sir V.C.Desikachariar, Kt. Who gave shape to the proposals formulatedby Sir P. Rajagopalachariar, the first Registrar of Co-operative Societies. Sir V.C. Desikachariar, Kt. along with 17 eminent personalities sent up to the Registrar of Cooperative Credit Societies an application for the registration of the Bank under the Cooperative Societies Act. The Government, in G.O.Ms.No.1022, Revenue, dated 19.10.1905 accorded the necessary sanction and the Registrar of Co-operative Credit Societies registered the Bank on 23.11.1905. The Bank commenced its business on 26.11.1905.

Initial Authorized Share Capital: The initial authorized Share Capital was Rs.25000/- divided into 50 shares of Rs.500/- each. The 17 pioneers held one share each, 10 other new members held 11 more shares. The first call of Rs.50/- per share, was made on 26.11.1905. With the addition of 2 more such calls, the paid-up Share Capital @ Rs.150/- per share,

aggregated Rs.4200/- as on 31.03.1906.

First Loan: The first loan was disbursed to No.21 Big Kancheepuram Urban Weavers Union on 14.02.1906.The first fixed deposit was received on 14.03.1906. The Banks first accounting year ended on 31.03.1906 with a net profit of Rs.20-9-0.Its the only Co-operative bank incurring profits through the year since its establishments.

Best Performance Awards:

The National Federation of State Co-operative Banks Ltd. (NAFSCOB) has instituted a scheme of performance awards to Apex Banks since 1982-83. It may be noted that our Bank has been getting an award from the NAFSCOB continuously from 1985-86 as detailed below: 1985-86: THIRD PRIZE for overall performance. 1986-87: SECOND PRIZE for overall performance. 1987-88: THIRD PRIZE for overall performance. 1988-89: SECOND PRIZE for overall performance.

1989-90: SPECIAL AWARD for the outstanding performance under Social Goals Development. 1990-91: SECOND PRIZE for overall performance. 1991-92: FIRST PRIZE for overall performance. 1992-93: SPECIAL AWARD for the outstanding performance under Social Goals Development.

1993-94: SPECIAL AWARD for the outstanding performance under Operational Efficiency. 1995-96: FIRST PRIZE for overall performance. 1996-97: FIRST PRIZE for overall performance. The NAFSCOB has selected our Bank and awarded FIRST PRIZE for Best Performance under "All India Mutual Arrangement Scheme" for 1996-97 and 1997-98. The National Bank for Agriculture and Rural Development has instituted a scheme of performance awards to Apex Banks since 1995-96. Our Bank has

got SECOND PRIZE for Overall Performance for 1995-96 and 1998-99.

1.3 INDUSTRY PROFILE

The Banking Industry was once a simple and reliable business that took deposits from investors at a lower interest rate and loaned it out to borrowers at a higher rate. However deregulation and technology led to a revolution in the Banking Industry that saw it transformed. Banks have become global industrial powerhouses that have created ever more complex products that use risk and securitisation in models that only PhD students can understand. Through technology development, banking services have become available 24 hours a day, 365 days a week, through ATMs, at online bankings, and in electronically enabled exchanges where everything from stocks to currency futures contracts can be traded . The Banking Industry at its core provides access to credit. In the lenders case, this includes access to their own savings and investments, and interest payments on those amounts. In the case of borrowers, it includes access to loans for the creditworthy, at a competitive interest rate. Banking services include transactional services, such as verification of account details, account balance details and the transfer of funds, as well as advisory services, that help individuals and institutions to properly plan and manage their finances. Online banking channels have become key in the last 10 years.

The collapse of the Banking Industry in the Financial Crisis, however, means that some of the more extreme risk-taking and complex securitisation activities that banks increasingly engaged in since 2000 will be limited and carefully watched, to ensure that there is not another banking system meltdown in the future.

LAW OF BANKING 10

Banking law is based on a contractual analysis of the relationship between the bank (defined above) and the customerdefined as any entity for which the bank agrees to conduct an account.

The law implies rights and obligations into this relationship as follows: 1. The bank account balance is the financial position between the bank and

the customer: when the account is in credit, the bank owes the balance to the customer; when the account is overdrawn, the customer owes the balance to the bank. 2. The bank agrees to pay the customer's cheques up to the amount

standing to the credit of the customer's account, plus any agreed overdraft limit. 3. The bank may not pay from the customer's account without a mandate

from the customer, e.g. a cheque drawn by the customer. 4. The bank agrees to promptly collect the cheques deposited to the

customer's account as the customer's agent, and to credit the proceeds to the customer's account. 5. The bank has a right to combine the customer's accounts, since each

account is just an aspect of the same credit relationship. 6. The bank has a lien on cheques deposited to the customer's account, to

the extent that the customer is indebted to the bank. 7. The bank must not disclose details of transactions through the

customer's accountunless the customer consents, there is a public duty to disclose, the bank's interests require it, or the law demands it. 8. The bank must not close a customer's account without reasonable

notice, since cheques are outstanding in the ordinary course of business for several days.

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These implied contractual terms may be modified by express agreement between the customer and the bank. The statutes and regulations in force within a particular jurisdiction may also modify the above terms and/or create new rights, obligations or limitations relevant to the bank-customer relationship.

Some types of financial institution, such as building societies and credit unions, may be partly or wholly exempt from bank licence requirements, and therefore regulated under separate rules.

The requirements for the issue of a bank licence vary between jurisdictions but typically include: 1. 2. 3. Minimum capital Minimum capital ratio 'Fit and Proper' requirements for the bank's controllers, owners,

directors, and/or senior officers 4. Approval of the bank's business plan as being sufficiently prudent and

plausible.

BANKING CHANNELS

Banks offer many different channels to access their banking and other services: A branch, banking centre or financial centre is a retail location where a bank or financial institution offers a wide array of face-to-face service to its customers. ATM is a computerised telecommunications device that provides a financial institution's customers a method of financial transactions in a public space without the need for a human clerk or bank teller. Most banks now have more ATMs than branches, and ATMs are providing a wider range of services to a wider range of users. For example in Hong Kong, most ATMs enable anyone to deposit cash to any customer of the bank's account by feeding in the notes and
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entering the account number to be credited. Also, most ATMs enable card holders from other banks to get their account balance and withdraw cash, even if the card is issued by a foreign bank. Mail is part of the postal system which itself is a system wherein written documents typically enclosed in envelopes, and also small packages containing other matter, are delivered to destinations around the world. This can be used to deposit cheques and to send orders to the bank to pay money to third parties. Banks also normally use mail to deliver periodic account statements to customers. Telephone banking is a service provided by a financial institution which allows its customers to perform transactions over the telephone. This normally includes bill payments for bills from major billers (e.g. for electricity). Online banking is a term used for performing transactions, payments etc. over the Internet through a bank, credit union or building society's secure website. Mobile banking is a method of using one's mobile phone to conduct simple banking transactions by remotely linking into a banking network. Video banking is a term used for performing banking transactions or professional banking consultations via a remote video and audio connection. Video banking can be performed via purpose built banking transaction machines (similar to an Automated teller machine), or via a video conference enabled bank branch.
TYPES OF BANKS

Banks' activities can be divided into retail banking, dealing directly with individuals and small businesses;business banking, providing services to mid-market business; corporate banking, directed at large business entities; private banking, providing wealth management services to high net worth individualsand families; and investment banking, relating to activities on the financial markets. Most banks are profit-making, private enterprises. However, some are owned by government, or are non-profit organizations.

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Central banks are normally government-owned and charged with quasi-regulatory responsibilities, such as supervising commercial banks, or controlling the cash interest rate. They generally provide liquidity to the banking system and act as the lender of

last resort in event of a crisis.

Banking in India originated in the last decades of the 18th century. The oldest bank in existence in India is the State Bank of India, a government-owned bank that traces its origins back to June 1806 and that is the largest commercial bank in the country. Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India, relegating it to commercial banking functions. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the government nationalized the six next largest in 1980.

Currently, India has 96 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake), 31 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.

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1.4 OBJECTIVES OF THE STUDY

Primary Objectives: To analyze the overall financial performance of TNSC Bank. Secondary Objectives: To interpret the profitability of the TNSC Bank. To measure the managerial efficiency of the TNSC Bank. To measure the utilization of various assets during the period. To measure the short-term and long-term solvency of the firm.

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1.5 LIMITATIONS OF THE STUDY

Limitations: FSA (Financial Statement Analysis) is generally an outdated (because of Historical Cost Basis) post-mortem of what has already happened. It is simply a common starting point for comparison. Always use Constant Rupee / Dollar analysis to account for inflation or increase. FSA is limited by the fact that financial statements are window dressed by creative accountants. Window dressing refers to the understatement or overstatement of financial facts. It is difficult and not easy to stay based on Financial Ratios whether a company is healthy or not because that depends on the size and nature of the business.

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2.1 REVIEW OF LITERATURE

REVIEW OF LITERATURE:

Debaris Rej and Debarish Sur (1997) studied the Financial Performance on Bank of Baroda: a case study of financial statement from the period of 1987-88 to 1996-1997 to measure the profitability and to assess the degree of relationship between the selected profitability ratios and also study the joint effect of the above ratio. He concluded that the profitability of the Bank of Baroda was not suitable during the study period and relationship between the variables both positive and negative associations.

R.SWAMINATHAN(1997) in his study made an attempt to analyze the report. The secondary data were collected from the annual reports of Karur Vysya Bank for a period of six years from 1990-91 to 1995-96. To examine the impact of financial performance on the liquidity and profitability of the institution. To evaluate the financial performance in the context of current assets.

JA.R.S.RAJESH(1998) in his study made an attempt to analyze the financial performance of UNION BANK OF INDIA. The data were collected for a period of five years from 1992-93 to 1996-97. Other than tool of ratio, average, coefficient of variation the technique of simple correlation coefficient was used. His objectives of the study were to examine the solvency position, to find out relationship between current assets and current liabilities, receivables and long term assets. The findings of the study were as the financial performance of the institution has considerably increased during the study period. The rate of return on current assets has increased considerably.

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J.KAVITHA(1999) in her study analyzes the fianancial performance of ICICI BANK LTD,ERODE. The data were collected for a period of five years starting from 1993-94 to 1997-98.The sources of data were secondary in nature being collected from the annual reports of the company. The only tool used in the study was ratio analysis. Her objectives of the study were as to analyze the effect of financial performance on current assets and current liabilities. To analyze the effect of financial performance on profitability and liquidity of the institution.

Steven M. Fazzari and Bruce c. Peterson (1993) Titled Financial Performance: New Evidence on Financing Constraints Published by: Blackwell Publishing on behalf of The RAND Corporation. This article presents new tests for finance constraints on investment by emphasizing the often-neglected role of working capital ass both a use and a source of funds. The co-efficient of endogenous working capital investment is negative in a fixed-investment regression, as expected if working capital competes with fixed investment for a limited pool of finance. This finding addresses a criticism of previous research on finance constraints, that cash flow may simply proxy shifts in investment demand. In addition, previous studies may have under-estimated the impact of finance constraints on growth and investment because firms smooth fixed investment in the short run with financial performance.

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2.2 RESEARCH METHODOLOGY RESEARCH METHODOLOGY

The term research as a scientific & systematic search for pertinent information on a specific topic . Research methodology is the way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically

PERIOD OF STUDY
Study period of the TNSC BANK for the period of 5 years from 2005 -2009.

Data collection
The data collections classified into two types are I. II. Primary data Secondary data

Primary data
The primary data are data collected are directly from the source. i.e, enquires, personal interview etc .

Secondary data
The secondary data are data are collected from information which is used by other. It is not direct information. This information is already collected and
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analysis by other and that information is used by others. The secondary data are collected from following:-

Banks annual report Banks website Manual

TOOLS USED FOR DATA ANALYSIS

Comparitive Balance Sheet Common Size Balance Sheet Trend Analysis Ratio Analysis Charts & Diagrams

Tools and Techniques of Financial Statement Analysis:

Following are the most important tools and techniques of financial statement analysis:

Horizontal and Vertical Analysis Ratio Analysis

Horizontal Analysis or Trend Analysis:

Comparison of two or more year's financial data is known as horizontal analysis, or trend analysis. Horizontal analysis is facilitated by showing changes

between years in both dollar and percentage form.

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Trend Percentage:

Horizontal analysis of financial statements can also be carried out by computing trend percentages. Trend percentage states several years' financial data in terms of a base year. The base year equals 100%, with all other years stated in some percentage of this base.

Vertical Analysis

Vertical analysis is the procedure of preparing and presenting common size statements. Common size statement is one that shows the items appearing on it in percentage form as well as in dollar form. Each item is stated as a percentage of some total of which that item is a part. Key financial changes and trends can be highlighted by the use of common size statements. Ratio Analysis The ratio analysis is one of the most powerful tools of financial analysis. It is the process of establishing and interpreting various ratios. A financial ratio is the relationship between two accounting figures expressed mathematically. Ratios provide clues to the financial position of a concern. These are the pointers and indicators of financial strength, soundness, position or weakness of an enterprise. One can draw conclusions about the exact financial positions of a concern with the help of ratios. Ratio analysis is an appraisal of the ratios to make proper analysis about the strengths and weaknesses of the companys operations. Ratio analysis is extremely helpful in providing valuable insight into a companys financial picture. The following ratios were taken into account and analyzed in regarding with the working capital management and solvency of the company.

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1. Current Ratio 2. Quick Ratio 3. Capital Gearing Ratio 4. Fixed Assets Turnover Ratio

Current Ratio:

Current Ratio =

Current Assets Current Liabilities

This ratio measures the solvency of the company in the short-term. Current assets are those assets, which can be converted into cash within a year. Current liabilities and provisions are those liabilities that are payable within a year. A current ratio of 2:1 indicates a highly solvent position. Liquid Ratio or Acid-test Ratio:

Liquid Ratio =

Quick Assets Current Liabilities

Liquid ratio or Quick ratio is used as a measure of the companys ability to

meet its current obligations. Since bank overdraft is secured by the inventories, the other current assets must be sufficient to meet other current liabilities. A quick ratio of 1:1 indicates highly solvent position. This ratio is also called the acid test ratio. This ratio serves as a supplement to the current ratio in analyzing liquidity. Fixed Assets Turnover Ratio: Fixed Turnover Ratio = Turnover / Net Fixed Assets

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Capital Gearing Ratio: Fixed Turnover Ratio = Turnover / Net Fixed Assets

Limitations of Financial Statement Analysis:

Although financial statement analysis is highly useful tool, it has two limitations. These two limitations involve the comparability of financial data between companies and the need to look beyond ratios

Advantages of Financial Statement Analysis:

There are various advantages of financial statements analysis. The major benefit is that the investors get enough idea to decide about the investments of their funds in the specific company. Secondly, regulatory authorities like International Accounting Standards Board can ensure whether the company is following accounting standards or not. Thirdly, financial statements analysis can help the government agencies to analyze the taxation due to the company. Moreover, company can analyze its own performance over the period of time through financial statement analysis.

Disadvantages or Limitations:

Financial statements give an idea about the financial position of the company, however, there are some limitations of the financial statements. The first limitation is that a financial statement ignores the productivity and the skills of the employees in an organization. Management Decision Analysis Report gives an idea about it but financial
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statements are unable to evaluate the skills which a company has. Secondly, balance sheet does not give timely and relevant information because it is based on historical costs and it does not give a fair idea about the current position of the company. There are different accounting measurement systems therefore, use of different techniques by different companies can make the comparisons of financial statements difficult. Moreover, income statement is considered a fiction because cash is king and income statement ignores this fact. IMPORTANCE OF FINANCIAL STATEMENT ANALYSIS:

At regular period public companies must prepare documents called financial statements. Financial statements show the financial performance of an company. They are used for both internal-, and external purposes. When they are used internally, the management and sometimes the employees use it for their own information. Managers use it to plan ahead and set goals for upcoming periods. When they use the financial statements that were published, the management can compare them with their internally used financial statements. They can also use their own and other enterprises financial statements for comparison with macroeconomical datas and forecasts, as well as to the market and industry in which they operate in.

The four main types are balance sheets, profit and loss accounts, cash flow statements, and income statements. At regular period public companies must prepare documents called financial statements. Financial statements show the financial performance of an company.They are used for both internal-, and external purposes. When they are used internally, the management and sometimes the employees use it for their own information. Managers use it to plan ahead and set goals for upcoming periods. When they use the financial statements that were published, the management can compare them with their internally used financial statements. They can also use their own and other enterprises financial statements for comparison with

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macroeconomical datas and forecasts, as well as to the market and industry in which they operate in. The four main types are balance sheets, profit and loss accounts, cash flow statements, and income statements. Balance sheets:

Balance sheets provide the observant with a clear picture of the financial condition of the company as a whole. It lists in detail the tangible and the intangible goods that the company owns or owes. These good can be broken further down into three main categories; the assets, the liabilities and the shareholders equity Assets:

Assets include anything that the company actually owns and has disposal over. Examples of the assets of a company are its cash, lands, buildings, and real estates, equipment, machinery, furniture, patents and trademarks, and money owed by certain individuals or/and other businesses to the particular company. Assets that are owed to the company are referred to as accounts-, or notes receivables. - Current Assets include anything that company can quickly monetise. Such current assets include cash, government securities, marketable securities, accounts receivable, notes receivable (other than from officers or employees), inventories, prepaid expenses, and anyother item that could be converted into cash within one year in the normal course of business. - Fixed Assets are long-term investments of the company, such as land, plant, equipment, machinery, leasehold improvements, furniture, fixtures, and any other items with an expected useful business life usually measured in a number of years or decades (as opposed to assets that wear out or are used up in less than one year. Fixed assets are usually accounted as expensed upon their purchase. They are normally not for

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resale and are recorded in the Balance Sheet at their net cost less (less is accounting term for minus) accumulated depreciation. Other Assets include any intangible assets, such as patents, copyrights, other intellectual property, royalties, exclusive contracts, and notes receivable from officers and employees. Liabilities:

Liabilities are money or goods acquired from individuals, and/or other corporate entities. Some examples of liabilities would be loans, sale of property, or services to the company on credit. Creditors (those that loan to the company) do not receive ownership in the business, only a (usually written) promise that their loans will be paid back according to the term agreed upon. Current Liabilities are accounts-, and notes-, taxes payable to financial

institutions,accrued expenses (eg.: wages, salaries), current payment (due within one year) of long-term debts, and other obligations to creditors due within one year. Long-Term Liabilities are mortgages, intermediate and long-term loans, equipment loans, and other payment obligation due to a creditor of the company. Long-term liabilities are due to be payed in more than one year.

Shareholders equity (or net worth, or capital): The shareholders equity is money or other forms of assets invested into the business by the owner, or owners, to acquire assets and to start the business. Any net profits that are not paid out in form of dividends to the owner, or owners, are also added to the shareholders equity. Losses during the operation of the business are subtracted from the shareholders equity. Assets are calculated the following way:
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Assets=Liabilities+Net worth Balance sheets show how the assets, liabilities, and the net worth of a business are distributed. They usually are prepared at set periods of time, for example at the end of each quarter. It is always prepared at the end of fiscal years. The periodic preparation of the balance sheets, the owner and/or the manager of the company can see historic-, and current trends andalsothe general performance of the corporation. It allows decision makers to make adjustments when needed, like the proportion of liabilities to assets. All balance sheets contain the same categories of assets, liabilities and net worth figures. Assets are arranged in decreasing order of their liquidity . Liabilities are listed in order of how soon they must be repaid, followed by retained earnings (net worth of owners equity). The categories and formats of Balance Sheets are established by a system known as Generally Accepted Accounting Principles (GAAP). The system is applied to all companies, large or small, so anyone reading the Balance Sheets can readily understand what it is saying.

Profit and Loss Account:

Profit and loss accounts summarize the incomes and expenses of a company in a given period of time. It also includes accruals too, which are incomes that will be realized only after the particular Profit and Loss Account statement was prepared. Income statements: Income statements measure the companys sales and expenses over a specific period of time. They are prepared each month and fiscal year end. Income statements show the results of operating during those accounting periods. They are also prepared

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using the Generally Accepted Accounting Principles (GAAP) and contain specific revenue and expense categories regardless of the nature of the company. Preparation of Income Statement:

The Income Statement normally shows whether the business is earning profits or sustaining losses. It communicates the financial performance of the business. The structureof the income statement differs with the nature of the business. The business can either be a manufacturing, merchandising/trading or service entity. Regardless of the structure, they however, communicate the same information. Factors to be considered in the preparation of income statements are:

Revenues/Sales :

This item carries the revenues/sales generations of the company. Sales consist of Cash Sales (cash is paid at the time of sale) or Credit Sales (Cash paid later). The sales/revenue is made up with the following items: Note:

Other Incomes/Revenues results from the revenues which are not core business of the company. Such revenues are for example, if a company earns interest from bankingservices, dividends received from investment of other companies or subsidiaries, money awards, etc. For a trading and service entity the same consideration is made for the revenues/income as sown above. The only difference for the service company is the return inwards since in most cases services are consumed when

manufactured/prepared with nothing to be left as a return.

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Cost of Goods Sold:

This represents the total cost of buying raw materials, and paying for all the factors that go into producing finished goods. The cost of goods should be deducted from the sales revenues. Note:

For manufacturing firm, the process of manufacturing goods is a continuous process.Hence there might be materials which are in stock or some of the goods may be half processed (work in progress) both at the opening of the financial year or at the closure of the financial year. Hence, calculation of the cost of goods sold should include consideration of all the items shown in the table above. Service Firms:

In service companies such as telecommunications, cost of service provided may be expressed as percentage of sales say 60% of the revenues generated regarded as cost of services to pay for bandwidth access in a satellite company. Gross Profit:

This is the difference between Net Sales and the Cost of Goods Sold. Gross profit is the profit obtained from the normal operation of a business firm before incurring operating expenses, tax and other deductions. Expenses:

These are the expenses the company incurs in the process of generating revenues.The expenses depend on the nature of the business firm.

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Profit Before Interest and Tax:

This is equal to the Cost of goods sold less expenses.

Note:

Dividend is a portion of a company's profit paid to common and preferred shareholders. It is paid to common stock holders only when the company makes profit.In arriving at the income statement as shown above, there should be supporting documents which when totalled brings the figures for the above items.

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3.1.1 TREND ANALYSIS

3.1.1 TABLE SHOWING TREND ANALYSIS (in percentage):

Particulars Cash on Hand & Bank Investments Interest Receivable Bills Receivable Other Assets Bills Payable Overdue Interest Reserve Interest Payable Other Liabilities

2004-05 100

2005-06 124.98

2006-07 120.88

2007-08 154.93

2008-09 30.74

100 100

91.42 105.84

89.63 97.67

120.63 72.14

136.18 103.27

100 100 100 100

145.01 107.60 145.01 116.44

92.57 353.02 92.57 116.44

71.34 174.92 71.34 116.44

69.64 221.08 69.64 116.44

100 100

75.38 143.76

83.12 365.39

109.36 194.50

113.60 561.38

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3.1.1 CHART SHOWING TREND ANALYSIS:

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2004-05 2005-06 2006-07 2007-08 2008-09

Cash on Hand & Bank Interest Receivable Other Assets Overdue Interest Reserve Other Liablities

Invstments Bills Receivable Bills Payable Interest Payable

INTERPRETATION:

The standard or base year is 2004, when compared with this year the Net Working Capital Percentage for other years are 95.69%, 145.34%, 112.6%, and 156.58%. Thus it can be interpreted that except for decline is 2005-06; there is an upward trend in the banks short-term financial position. The decline in 2005 may be attributed , to the natural calamities that occurred in that year, the bank had spent money for a large extent. Thus there was a fall in cash balances. In the year 2008 cash balances increased because the bank received compensation from government for loss incurred by the company in the year 2005.

32

3.1.2 COMPARITIVE BALANCE SHEET

3.1.2.1 Table Showing Comparitive Balance Sheet as on 2004-05 & 2005-06:

Particulars

2004-05

2005-06

Increase/ Decrease

% of Increase/ Decrease

Assets: Current Assets: Cash on Hand & Bank Investments Loans & Advances Interest Receivable Bills Receivable Branch Adjustments Other Assets Total Current Assets Fixed Assets Total Assets 64377 120910 282330 9199 471 117 1224 478628 719 479347 80451 110536 304071 9736 683 1317 506794 732 507526 16074 -10374 21741 537 212 -117 93 28166 13 28179 24.97 -8.58 7.70 5.84 45.01 -100 7.60 5.88 1.81 5.88

33

Particulars

2004-05

2005-06

Increase/ Decrease

% of Increase/ Decrease

Liabilities: Current Liabilities: Bills Payable Branch Adjustments Overdue Interest Reserve Interest Payable ACSTI Other Liabilities Total Current Liabilities Fixed Liabilities: Capital Reserves & Surplus Deposits & Other A/Cs Borrowings Total Fixed Liabilities Total Liabilities 4095 40228 306258 108218 458799 476809 5348 46758 312678 120676 485460 504724 1253 6530 6420 12458 26661 27915 30.60 16.23 2.10 11.51 5.81 5.85 471 3686 8162 163 5528 18010 683 22 4292 6153 167 7947 19264 212 22 606 -2009 4 2419 1254 45.01 16.44 -24.61 2.45 43.76 6.96

34

3.1.2.2 Table Showing Comparative Balance Sheet as on 2005-06 & 2006-07:

Particulars

2005-06

2006-07

Increase/ Decrease

% of Increase/ Decrease

Assets: Current Assets: Cash on Hand & Bank Investments Loans & Advances Interest Receivable Bills Receivable Branch Adjustments Other Assets Total Current Assets Fixed Assets Total Assets 80451 110536 304071 9736 683 1317 506794 732 507526 77813 108374 324296 8985 436 4321 524225 709 524934 -2638 -2162 20225 -751 -247 3004 17431 -23 17408 -3.28 -1.95 6.65 -7.71 -36.16 228.09 3.44 -3.14 3.43

35

Particulars

2005-06

2006-07

Increase/ Decrease

% of Increase/ Decrease

Liabilities: Current Liabilities: Bills Payable Branch Adjustments Overdue Interest Reserve Interest Payable ACSTI Other Liabilities Total Current Liabilities Fixed Liabilities: Capital Reserves & Surplus Deposits & Other A/Cs Borrowings Total Fixed Liabilities Total Liabilities 5348 46758 312678 120676 485460 504724 24794 51796 326350 87823 490763 522756 19446 5038 13672 -32853 5303 18032 363.61 10.77 4.37 -27.22 1.09 3.57 683 22 4292 6153 167 7947 19264 436 43 4292 6784 239 20199 31993 -247 21 631 72 12252 12729 -36.16 95.45 10.25 43.11 154.17 66.08

36

3.1.2.3 Table Showing Comparitive Balance Sheet as on 2006-07 & 2007-08:

Particulars

2006-07

2007-08

Increase/ Decrease

% of Increase/ Decrease

Assets: Current Assets: Cash on Hand & Bank Investments Loans & Advances Interest Receivable Bills Receivable Branch Adjustments Other Assets Total Current Assets Fixed Assets Total Assets 77813 108374 324296 8985 436 4321 524225 709 524934 99730 145851 333626 6636 336 4 2141 588324 707 589031 21917 37477 9330 -2349 -100 4 -2180 64099 -2 64097 28.17 34.58 2.688 -26.14 -22.94 50.45 12.23 -0.28 12.21

37

Particulars

2006-07

2007-08

Increase/ Decrease

% of Increase/ Decrease

Liabilities: Current Liabilities: Bills Payable Branch Adjustments Overdue Interest Reserve Interest Payable ACSTI Other Liabilities Total Current Liabilities Fixed Liabilities: Capital Reserves & Surplus Deposits & Other A/Cs Borrowings Total Fixed Liabilities Total Liabilities 24794 51796 326350 87823 490763 522756 44375 58385 399372 60840 562972 587520 19581 6589 73022 -26983 72209 64764 78.97 12.72 22.37 -30.72 14.71 12.39 436 43 4292 6784 239 20199 31993 336 4292 8926 242 10752 24548 -100 -43 2142 3 9447 -7445 -22.93 -100 31.57 1.25 46.77 -23.27

38

3.1.2.4 Table Showing Comparitive Balance Sheet as on 2007-08 & 2008-09:

Particulars

2007-08

2008-09

Increase/ Decrease

% of Increase/ Decrease

Assets: Current Assets: Cash on Hand & Bank Money at Call &Short Notice Investments Loans & Advances Interest Receivable Bills Receivable Branch Adjustments Other Assets Total Current Assets Fixed Assets Total Assets 588324 707 589031 696081 703 696784 107757 -4 107753 18.31 -0.56 18.29 99730 145851 333626 6636 336 4 2141 19789 169500 164657 329601 9500 328 2706 -79941 169500 18806 -4025 2864 -8 -4 565 -80.16 12.89 -0.12 43.16 -2.38 -100 26.39

39

Particulars

2007-08

2008-09

Increase/ Decrease

% of Increase/ Decrease

Liabilities: Current Liabilities: Bills Payable Branch Adjustments Overdue Interest Reserve Interest Payable ACSTI Other Liabilities Total Current Liabilities Fixed Liabilities: Capital Reserves & Surplus Deposits & Other A/Cs Borrowings Total Fixed Liabilities Total Liabilities 44375 58385 399372 60840 562972 587520 63509 58962 442916 83059 648446 693410 19134 577 43544 22219 85474 105890 43.12 0.99 10.90 36.52 15.18 18.02 336 4292 8926 242 10752 24548 328 39 4292 9272 31033 44964 -8 39 346 -242 20281 20416 2.38 3.88 -100 188.62 83.17

40

INTERPRETATION:

The percentage of total assets was 5.85 in 2004-05 to 2005-06.It has gone up to 18.29 in 2007-08 to 2008-09, but the next year also the percentage was not reach that level. Similarly the percentage of total liabilities(capital) also gone up to 5.85 in 2004-05 to 2005-06 , 18.02 in 2007-08 to 2008-09.Thus the proportion of asset as increased by a higher percentage about (18.29) as compared to increase in the proportion of liabilities of the same percentage.

41

3.1.3 COMMON SIZE BALANCE SHEET

3.1.3.1 Table showing Common Size Balance Sheet as on 2004-05:

Particulars Assets: Current Assets: Cash on Hand & Bank Money at Call & Short Notice Investments Loans & Advances Interest Receivable Bills Receivable Branch Adjustments Other Assets Total Current Assets Fixed Assets Total Assets

2004-05

13.43 25.22 0.90 1.92 0.10 0.02 0.25 99.84 0.15 100

42

Liabilities: Current Liabilities: Bills Payable Branch Adjustments Overdue Interest Reserve Interest Payable ACSTI Other Liabilities Total Current Liabilities Fixed Liabilities: Capital Reserves & Surplus Deposits & Other A/Cs Borrowings Total Fixed Liabilities Total Liabilities 0.85 8.39 63.89 22.58 95.71 100 0.10 0.77 1.70 0.03 1.15 3.75

43

3.1.3.2 Table showing Common Size Balance Sheet as on 2005-06:

Particulars Assets: Current Assets: Cash on Hand & Bank Money at Call & Short Notice Investments Loans & Advances Interest Receivable Bills Receivable Branch Adjustments Other Assets Total Current Assets Fixed Assets Total Assets

2005-06

15.85 21.78 59.91 1.92 0.13 0.26 99.85 0.14 100

44

Liabilities: Current Liabilities: Bills Payable Branch Adjustments Overdue Interest Reserve Interest Payable ACSTI Other Liabilities Total Current Liabilities Fixed Liabilities: Capital Reserves & Surplus Deposits & Other A/Cs Borrowings Total Fixed Liabilities Total Liabilities 1.05 9.21 61.61 23.78 95.65 100 0.13 0.00 0.84 1.21 0.03 1.56 3.77

45

3.1.3.3 Table showing Common Size Balance Sheet as on 2006-07:

Particulars Assets: Current Assets: Cash on Hand & Bank Money at Call & Short Notice Investments Loans & Advances Interest Receivable Bills Receivable Branch Adjustments Other Assets Total Current Assets Fixed Assets Total Assets

2006-07

14.82 20.64 61.78 1.71 0.08 0.82 99.85 0.13 100

46

Liabilities: Current Liabilities: Bills Payable Branch Adjustments Overdue Interest Reserve Interest Payable ACSTI Other Liabilities Total Current Liabilities Fixed Liabilities: Capital Reserves & Surplus Deposits & Other A/Cs Borrowings Total Fixed Liabilities Total Liabilities 4.72 9.87 62.17 16.73 93.49 100 0.08 0.01 0.82 1.29 0.04 3.85 6.09

47

3.1.3.4 Table showing Common Size Balance Sheet as on 2007-08:

Particulars Assets: Current Assets: Cash on Hand & Bank Money at Call & Short Notice Investments Loans & Advances Interest Receivable Bills Receivable Branch Adjustments Other Assets Total Current Assets Fixed Assets Total Assets

2007-08

16.93 24.76 56.64 1.13 0.06 0.00 0.36 99.88 0.12 100

48

Liabilities: Current Liabilities: Bills Payable Branch Adjustments Overdue Interest Reserve Interest Payable ACSTI Other Liabilities Total Current Liabilities Fixed Liabilities: Capital Reserves & Surplus Deposits & Other A/Cs Borrowings Total Fixed Liabilities Total Liabilities 7.53 9.91 67.80 10.33 95.57 100 0.06 0.73 1.51 0.04 1.82 4.16

49

3.1.3.5 Table showing Common Size Balance Sheet as on 2008-09:

Particulars Assets: Current Assets: Cash on Hand & Bank Money at Call & Short Notice Investments Loans & Advances Interest Receivable Bills Receivable Branch Adjustments Other Assets Total Current Assets Fixed Assets Total Assets Particulars

2008-09

2.84 24.33 23.63 47.30 1.36 0.05 0.39 99.9 0.10 100 2008-09

50

Liabilities: Current Liabilities: Bills Payable Branch Adjustments Overdue Interest Reserve Interest Payable ACSTI Other Liabilities Total Current Liabilities Fixed Liabilities: Capital Reserves & Surplus Deposits & Other A/Cs Borrowings Total Fixed Liabilities Total Liabilities 9.11 8.46 63.56 11.92 93.05 100 0.05 0.00 0.61 1.33 4.45 6.44

51

INTERPRETATION:

The percentage of total assets was 3.25 in 2004-05. It has gone up to in 6.46 in 200607. But the next year also the percentage was not reach that level. Similarly the percentage of total liabilities (including capital) also gone up to 1.18 in the year 2008-09 and 2.57 in 2005-06. Thus the proportion of asset as increased by a higher percentage about (1.56) as compared to increase in the proportion of liabilities.

52

3.1.4 RATIO ANALYSIS

CURRENT RATIO:

3.1.4.1 TABLE SHOWING CURRENT RATIO:

YEAR 2004-05 2005-06 2006-07 2007-08 2008-09

CURRENT ASSETS 478511 506794 524225 588320 696081

CURRENT LIABILITIES 428637 448137 441592 480226 566608

RATIO 1.12:1 1.13:1 1.19:1 1.23:1 1.23:1

3.1.4.1 CHART SHOWING CURRENT RATIO:

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% CURRENT ASSETS CURRENT LIABILITIES 2008-09 2007-08 2006-07 2005-06 2004-05

53

LIQUID RATIO:

3.1.4.2 TABLE SHOWING LIQUID RATIO:

YEAR 2004-05 2005-06 2006-07 2007-08 2008-09

LIQUID ASSETS 478511 506794 524225 588320 696081

LIQUID LIABILITIES 428637 448137 441592 480226 566608

RATIO 1.12:1 1.13:1 1.19:1 1.23:1 1.23:1

3.1.4.2 CHART SHOWING LIQUID RATIO:

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% LIQUID ASSETS LIQUID LIABILITIES 2008-09 2007-08 2006-07 2005-06 2004-05

54

FIXED ASSETS RATIO:

3.1.4.3 TABLE SHOWING FIXED ASSETS RATIO:

YEAR 2004-05 2005-06 2006-07 2007-08 2008-09

TOTAL TURNOVER 35996 36308 42436 38637 46549

NET FIXED ASSETS 719 732 709 707 703

RATIO 50.06 49.60 59.85 54.65 66.21

3.1.4.3 CHART SHOWING FIXED ASSETS RATIO:

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% TOTAL TURNOVER NET FIXED ASSETS 2008-09 2007-08 2006-07 2005-06 2004-05

55

CAPITAL GEARING RATIO:

3.1.4.4 TABLE SHOWING CAPITAL GEARING RATIO:

YEAR 2004-05 2005-06 2006-07 2007-08 2008-09

LONG TERM FUNDS+DEBENTURES 108218 120676 87823 60840 83059

CAPITAL 4095 5348 24794 44375 63509

RATIO 26.42 22.56 3.54 1.37 1.30

3.1.4.4 CHART SHOWING CAPITAL GEARING RATIO:

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% L.TERM FUNDS+DEB CAPITAL 2008-09 2007-08 2006-07 2005-06 2004-05

56

4.1 FINDINGS
The percentage of total assets was 5.88 in 2004-05. It has come down to 3.43 in 2005-06. But the next year the percentage was reached to a high level of

comparative statement in the upcoming years according to the interpretation. The percentage of total liabilities was 5.85 in 2004-05. It has come down to 3.57 in the year 2005-06. But the percentage was reached to a high level of comparative statement in the upcoming years according to the interpretation. The percentage of total assets was 2.19 in 2005-06. It ha gone upto 5.68 in 2004-05 in the level of common size statement. Similarly the percentage of total liabilities (including capital) also gone up to 2.05 in 2005-06 and 4.65 in 2007-08.Thus the proportion of asset as increased by a higher percentage about (2.60) that the level of common size statement.

The current ratio has experienced a fluctuating trend throughout study period.
The ratio of every year is not satisfied with the current ratio level.

The ratio of the year 2004-05 and 2005-06 was not satisfied in quick ratio
standard norms.2006-07,2007-08,2008-09 satisfied the quick ratio standard norms 1:1.

The ratio of the year 2006-07 was is not satisfied with fixed assets ratio standard
norms. The years 2004-05 and 2005-06 are satisfied with the fixed assets standard norms 1:1.

57

4.2 SUGGESTIONS

The current ratio should be 2:1 and above, thus the firm is able o meet its current liabilities in time.

The absolute liquidity ratio should be kept the standard norm of 1:2. The inventory conversation period should be kept in an effective manner. The debtors collection period should be collected in an effective way. The analysis of current ratio, quick ratio and the absolute liquid ratio indicate the in sufficiency of the concern. It should take care for providing sufficient requirements for the concern.

To attract the customers the bank should introduce new policies. To satisfy the customers the bank should implement interest and loans to them.

58

4.3 CONCLUSION

The project entitled A STUDY ON FINANCIAL STATEMENT ANALYSIS

IN THE

TAMIL NADU STATE APE CO-OPEATIVE BANK LTD gave the researcher a deep knowledge of a financial performance and overall financial position of the TNSC Bank. This study aimed at analyzing the ratios if TNSC Bank balance sheet for the past five years in financial performance. The analysis of the data provided the conclusion that there was a fluctuating trend exists in the growth of financial performance components.

59

REFERENCES

BOOKS:
Pandey.I.M - Financial Management, vikas publishing house pvt ltd, New Delhi,1993. Financial Management Dr.S.N.Maheshwari.

WEBSITES:
www.tnscbank.com www.wikipedia.com www.google.com

The Tamil Nadu State Apex Co-operative Bank Ltd

60

PROFIT & LOSS A/C FOR THE YEAR ENDING 2004-05

EXPENDITURE

AMOUNT (IN LAKHS)

INCOME

AMOUNT (IN LAKHS)

TO INTEREST ON DEPOSITS & BORROWINGS TO SALARIES & ALLOWANCES TO RENT,RATES & TAXES TO LAW CHARGES TO POSTAGE ,TELEGRAM & TELEPHONE CHARGES TO AUDITORS FEES TO DEPRECIATION & REPAIRS TO PROPERTY TO PRINTING & STATIONERY CHARGES TO OTHER EXPENDITURE TO PROVISIONS & RESERVES MADE TO BALANCE OF PROFIT

22442 2535 201 1 8 13 536 53 730 6939 2538 35996

BY INTEREST,DISCOUNT & DIVIDEND BY COMMISSION, EXCHANGE,BROKERAGE BY OTHER RECEIPTS

35096 96 804

35996

The Tamil Nadu State Apex Co-operative Bank Ltd

61

BALANCE SHEET AS ON 2004-05

LIABILITIES

AMOUNT (IN LAKHS) 4095 40228 306258 108218 471 3686 8162 163 5528 2538 479347

ASSETS

AMOUNT (IN LAKHS) 64377 120910 282330 9199 471 117 719 1224

CAPITAL RESERVES & SURPLUS DEPOSITS & OTHER A/CS BORROWINGS BILLS PAYABLE OVERDUE INTEREST RESERVE INTEREST PAYABLE ACSTI OTHER LIABLITIES PROFIT & LOSS A/C

CASH ON HAND & BANK INVESTMENTS LOANS & ADVANCES INTEREST RECEIVABLE BILLS RECEIVABLE BRANCH ADJUSTMENTS FIXED ASSETS OTHER ASSETS

479347

The Tamil Nadu State Apex Co-operative Bank Ltd

62

PROFIT & LOSS A/C FOR THE YEAR ENDING 2005-06

EXPENDITURE

AMOUNT (IN LAKHS) 23230 2535 190 2 8 22 79 51 584 6682 2802 36308

INCOME

AMOUNT (IN LAKHS) 35693 104 511

TO INTEREST ON DEPOSITS & BORROWINGS TO SALARIES & ALLOWANCES TO RENT,RATES & TAXES TO LAW CHARGES TO POSTAGE ,TELEGRAM & TELEPHONE CHARGES TO AUDITORS FEES TO DEPRECIATION & REPAIRS TO PROPERTY TO PRINTING & STATIONERY CHARGES TO OTHER EXPENDITURE TO PROVISIONS & RESERVES MADE TO BALANCE OF PROFIT

BY INTEREST,DISCOUNT & DIVIDEND BY COMMISSION, EXCHANGE,BROKERAGE BY OTHER RECEIPTS

36308

The Tamil Nadu State Apex Co-operative Bank Ltd

63

BALANCE SHEET AS ON 2005-06

LIABILITIES

AMOUNT (IN LAKHS) 5348 46758 312678 120676 683 22 4292 6153 167 7947 2802 507526

ASSETS

AMOUNT (IN LAKHS) 80451 110536 304071 9736 683 732 1317

CAPITAL RESERVES & SURPLUS DEPOSITS & OTHER A/CS BORROWINGS BILLS PAYABLE BRANCH ADJUSTMENTS OVERDUE INTEREST RESERVE INTEREST PAYABLE ACSTI OTHER LIABLITIES PROFIT & LOSS A/C

CASH ON HAND & BANK INVESTMENTS LOANS & ADVANCES INTEREST RECEIVABLE BILLS RECEIVABLE FIXED ASSETS OTHER ASSETS

507526

The Tamil Nadu State Apex Co-operative Bank Ltd

64

PROFIT & LOSS A/C FOR THE YEAR ENDING 2006-07

EXPENDITURE

AMOUNT (IN LAKHS) 21185 2814 198 1 5 13 83 61 864 12154 2880 2178 42436

INCOME

AMOUNT (IN LAKHS) 35259 71 7106

TO INTEREST ON DEPOSITS & BORROWINGS TO SALARIES & ALLOWANCES TO RENT,RATES & TAXES TO LAW CHARGES TO POSTAGE ,TELEGRAM & TELEPHONE CHARGES TO AUDITORS FEES TO DEPRECIATION & REPAIRS TO PROPERTY TO PRINTING & STATIONERY CHARGES TO OTHER EXPENDITURE TO PROVISIONS & RESERVES MADE TO PROVISION FOR INCOM E TAX TO BALANCE OF PROFIT

BY INTEREST,DISCOUNT & DIVIDEND BY COMMISSION, EXCHANGE,BROKERAGE BY OTHER RECEIPTS

42436

The Tamil Nadu State Apex Co-operative Bank Ltd

65

BALANCE SHEET AS ON 2006-07

LIABILITIES

AMOUNT (IN LAKHS) 24794 51796 326350 87823 436 43 4292 6784 239 20199 2178 524934

ASSETS

AMOUNT (IN LAKHS) 77813 108374 324296 8985 436 709 4321

CAPITAL RESERVES & SURPLUS DEPOSITS & OTHER A/CS BORROWINGS BILLS PAYABLE BRANCH ADJUSTMENTS OVERDUE INTEREST RESERVE INTEREST PAYABLE ACSTI OTHER LIABLITIES PROFIT & LOSS A/C

CASH ON HAND & BANK INVESTMENTS LOANS & ADVANCES INTEREST RECEIVABLE BILLS RECEIVABLE FIXED ASSETS OTHER ASSETS

524934

The Tamil Nadu State Apex Co-operative Bank Ltd

66

PROFIT & LOSS A/C FOR THE YEAR ENDING 2007-08

EXPENDITURE

AMOUNT (IN LAKHS) 31271 3072 263 1 6 15 88 51 852 681 825 1512 38637

INCOME

AMOUNT (IN LAKHS) 38283 73 281

TO INTEREST ON DEPOSITS & BORROWINGS TO SALARIES & ALLOWANCES TO RENT,RATES & TAXES TO LAW CHARGES TO POSTAGE ,TELEGRAM & TELEPHONE CHARGES TO AUDITORS FEES TO DEPRECIATION & REPAIRS TO PROPERTY TO PRINTING & STATIONERY CHARGES TO OTHER EXPENDITURE TO PROVISIONS & RESERVES MADE TO PROVISION FOR INCOME TAX TO BALANCE OF PROFIT

BY INTEREST,DISCOUNT & DIVIDEND BY COMMISSION, EXCHANGE,BROKERAGE BY OTHER RECEIPTS

38637

The Tamil Nadu State Apex Co-operative Bank Ltd

67

BALANCE SHEET AS ON 2007-08

LIABILITIES

AMOUNT (IN LAKHS) 44375 58385 399372 60840 336 4292 8926 242 10752 1512 589031

ASSETS

AMOUNT (IN LAKHS) 99730 145851 333626 6636 336 4 707 2141

CAPITAL RESERVES & SURPLUS DEPOSITS & OTHER A/CS BORROWINGS BILLS PAYABLE OVERDUE INTEREST RESERVE INTEREST PAYABLE ACSTI OTHER LIABLITIES PROFIT & LOSS A/C

CASH ON HAND & BANK INVESTMENTS LOANS & ADVANCES INTEREST RECEIVABLE BILLS RECEIVABLE BRANCH ADJUSTMENTS FIXED ASSETS OTHER ASSETS

589031

The Tamil Nadu State Apex Co-operative Bank Ltd

68

PROFIT & LOSS A/C FOR THE YEAR ENDING 2008-09

EXPENDITURE

AMOUNT (IN LAKHS) 36810 3843 271 2 6 17 13 48 101 197 44 27 31 423 372 989 3374 46568

INCOME

AMOUNT (IN LAKHS) 23155 20198 141 159 18 62 1479 1 1355

TO INTEREST ON DEPOSITS & BORROWINGS TO SALARIES & ALLOWANCES TO RENT,RATES & TAXES TO LAW CHARGES TO POSTAGE ,TELEGRAM & TELEPHONE CHARGES TO TRAVELLING AND CONVEYANCE TO AUDITORS FEES TO REPAIRS AND MAINTENANCE TO DEPRECIATION & ON FIXED ASSETS TO AMORTISATION ON SECURITIES TO PRINTING & STATIONERY CHARGES TO ADVERTISEMENT TO ACSTI EXPENDITURE TO SUNDRY EXPENSES TO PROVISIONS & CONTINGENCIES TO PROVISION FOR INCOME TAX TO BALANCE OF PROFIT

BY INTEREST ON ADVANCES BY INCOME FROM INVESTMENTS BY COMMISSION, EXCHANGE & BROKERAGE BY RENT ON SAFE DEPOSIT LOCKERS BY PROFIT ON SALE OF SECURITIES BY OTHER INCOME BY INTEREST RECEIVED BY BAD & DOUBTFUL DEBTS BY PREVIOUS YEAR INCOME A/C IN CUR.YEAR

46568

The Tamil Nadu State Apex Co-operative Bank Ltd

69

BALANCE SHEET AS ON 2008-09

LIABILITIES

AMOUNT (IN LAKHS) 63509 58962

ASSETS

AMOUNT (IN LAKHS) 19789 169500

CAPITAL RESERVES & SURPLUS

CASH ON HAND & BANK MONEY AT CALL & SHORT NOTICE

DEPOSITS & OTHER A/CS BORROWINGS BILLS PAYABLE BRANCH ADJUSTMENTS OVERDUE INTEREST RESERVE INTEREST PAYABLE OTHER LIABLITIES PROFIT & LOSS A/C

442916 83059 328 39 4292 9272 31033 3374 696784

INVESTMENTS LOANS & ADVANCES INTEREST RECEIVABLE BILLS RECEIVABLE FIXED ASSETS OTHER ASSETS

164657 329601 9500 328 703 2706

696784

70